Cross Border Insolvency: Should India Adopt The UNCITRAL Model Law?

The fourth in the series of webinars organized by the UNCITRAL National Coordination Committee, India (UNCCI) with UNCITRAL Regional Centre for Asia and the Pacific ("UNCITRAL RCAP") and the Faculty of Law, Manav Rachna University was held on 6 June 2020. The discussion was on Cross Border Insolvency: Should India Adopt the UNCITRAL Model Law, 1997" A panel of eminent speakers comprising of Judge Allan L Gropper (Former Bankruptcy Judge, Southern District of New York), Ms. Kate Lannan (Senior Legal Officer, UNCITRAL), Dr. T.K. Viswanathan (Chairman, Bankruptcy Law Reforms Committee, India), Mr. Sumant Batra (Managing Partner, Kesar Dass B & Associates) participated in the discussion. The discussion was moderated by Ms. Aparna Ravi (Partner, Samvad Partners) and Ms. Adwaita Sharma (Advocate, and Secretary, UNCCI). Mr. Gourab Banerji (Senior Advocate and Barrister, Vice Chairman of UNCCI, Overseas Associate at Essex Court Chambers, London) set the tone for the discussion while graciously introducing the theme, illustrious speakers, and the moderators. Introducing the session in the capacity of vice chair of UNCCI he mentioned that UNCCI's mandate is to capacity build in topics of interest to UNCITRAL and that its Chairman is Mr. Fali Nariman (Senior Advocate). The moot question, in his opinion, was whether India should adopt the UNCITRAL Model Law on Cross-Border Insolvency ("Model Law"). He noted that while the issue of cross-border insolvency hasn't come to the fore in India, it is an extremely relevant topic in today's global time. He cited the example of the Jet Airways insolvency case, which demonstrated the need for India to implement a robust cross-border insolvency framework. His introductory remark was followed by co-welcoming remarks by Ms. Athita Komindr (Head UNCITRAL RCAP) who mentioned that this webinar was UNCITRAL R CAP's first digital event on Cross Border Insolvency. She informed UNCITRAL R-CAP is UNCITRAL's only regional centre and was established in year 2012. Its aim is to promote progressive harmonization and modernization of International trade law in Asia Pacific region., in doing so and they assist governments and stakeholder and overcoming disparities in national legal system thereby facilitating cross border commerce and international trade. She also informed that in addition to Insolvency UNCITRAL's current work program covers access to justice by mediation and arbitration, judicial sale of ships, creating a legally enabling environment for Micro Small and Medium Sized Enterprises, E-Commerce and the Digital Economy. She further mentioned that the theme for the webinar is especially timely as Covid-19 continues to destruct global trade the need for harmonization has become more pressing than ever. Ms. Aparna Ravi, moderator of the session, noted that the need for a cross-border insolvency framework cannot be ignored any longer, because the market does not wait for legislations to play catch up. She mentioned that currently Krishna Committee is set up by Government of India dealing rules and regulations to implement the cross border insolvency provisions into IBC and also to look into the Group Insolvency (It is noteworthy that Ms. Aparna is part of the said committee). She cited examples of Essar Steel, Videocon and Amtek Auto cases, apart from the Jet Airways example to assert that although, in the absence of any legislation, the judiciary is crafting a framework on a case by case basis but the same cannot be a substitute for adopting a comprehensive Insolvency legislation. Therefore it is...

Cross Border Insolvency: Should India Adopt The UNCITRAL Model Law?

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